TIP79 - Use thUSD protocol for expenses
AI summary
This proposal suggests that the Threshold DAO use its own thUSD protocol to manage some monthly expenses. Instead of directly spending its native T token, the DAO would convert $400,000 worth of T into tBTC each month. This tBTC would then be used as collateral to mint $160,000 in thUSD, a stablecoin, which would cover a portion of the DAO's operational costs.
If passed, the DAO's treasury would diversify by holding more Bitcoin (tBTC) and less of its native T token, potentially increasing its long-term resilience. It would also provide a real-world use case for the thUSD protocol, benefiting its adoption and marketing. However, it introduces more operational complexity and requires active debt management, with the risk of losing tBTC exposure if collateral ratios drop.
Voting results
🐳 Whale votes
0 votes > 5% VPFull proposal
Tldr Use thUSD protocol to mint thUSD against tBTC collateral to pay for some of the DAO’s monthly expenses.
Proposal Convert $400k T into tBTC each month and add that tBTC as collateral to a vault on the thUSD protocol to mint $160k thUSD (with a safe 250% collateralization ratio). Use the minted thUSD to pay part of the DAO’s monthly expenses.
Benefits Today the DAO pays expenses, including collaborator compensations, with T from the treasury. This is a pretty straightforward operation and each collaborator gets exposure to T. It also implies that the treasury gets depleted by ~$300k each …